The Longer The Squeeze The Better/Bigger The Pop

We all like to see our profits add up quickly, take our profits and get out of the trade. But what we often do is despise the time it takes for a good squeeze to develop -- play out-- and break out.

Is 36 points worth the waiting and watching?

That's $1,800 per contract --

1 contract = $1,800

10 contracts = $18,000

100 contracts = $180,000

1,000 contracts = $1,800,000

10,000 contracts = $18,000,000 -- for 8 hours of easy labor.

How many contracts do you want to trade?

Would half of any of the numbers above be worth a day's work for you?

When you have this kind of clear, very early warning, you will develop the confidence to go in boldly and have stunning results.

How much time are you willing to devote to mastering this kind of simple chart reading to accomplish these unimaginable results?

Well here's the joke...This is a daily opportunity in the mini S&P once you've mastered reading buying and selling pressure.

Warning!

Futures Trading Disclaimer: Trading futures and options involves the risk of loss. Please consider carefully whether futures or options are appropriate to your financial situation. Only risk capital should be used when trading futures or options. Investors could lose more than their initial investment. Past results are not necessarily indicative of future results. The risk of loss in trading can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition.

FOMC? No Problem!

Federal Open Market Commitee or FOMC announcements are cause for apprehension for market watchers and many traders. On days like this we know we're going to see more extreme volatility so we dial up to an even longer interval chart like a 12,000 Tick pictured below. If you're a scalper and you want to kill brain cells taking every trade then this approach is not for you.
But if you just want to take 20 points per contract ($1,000) and leave with $10K, $100K, $1 mil. or $10 mil. and call it a day then you'll "adjust your microscope" and zoom out.

For entry and exit use a magnified view like the 1000 Tick chart below. We had three clear confirmations for the buy around 4am, 8am and 9:30. So you knew which way it was going long before it went.

Warning!
Futures Trading Disclaimer: Trading futures and options involves the risk of loss. Please consider carefully whether futures or options are appropriate to your financial situation. Only risk capital should be used when trading futures or options. Investors could lose more than their initial investment. Past results are not necessarily indicative of future results. The risk of loss in trading can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition.

Where Did The Breakout Start?

Thursday was a squeeze for the last half of the session. The S&P was setting-up for the Friday break-out. That process actually began at 10:30-11:00 AM Thursday. Sixteen hours advance warning!

So here is my question....Was it the "less bad", non-farm payroll report? Or was it just that the market had been in a sideways channel for 3 days?

My answer is.... It doesn't matter! It was a 40 point per contract day! $2,000 per contract.

Every squeeze pops.

Look at the 10,000 Tick and look at the 3000/8000 Tick above. This market was going to break no matter what. The only difference might have been that the market might have gone higher if it was not a Friday in August.

But we had a clear sell signal at 1:30.

Warning!
Futures Trading Disclaimer: Trading futures and options involves the risk of loss. Please consider carefully whether futures or options are appropriate to your financial situation. Only risk capital should be used when trading futures or options. Investors could lose more than their initial investment. Past results are not necessarily indicative of future results. The risk of loss in trading can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition.

The Lazy "W"?

Warning!
Futures Trading Disclaimer: Trading futures and options involves the risk of loss. Please consider carefully whether futures or options are appropriate to your financial situation. Only risk capital should be used when trading futures or options. Investors could lose more than their initial investment. Past results are not necessarily indicative of future results. The risk of loss in trading can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition.

Buy/Sell Pressure vs. Volume

The difference between Buy/Sell pressure and volume is as different as night and day. Both charts above are Daily S&P mid-July when the world was focused on the 'head and shoulders' formation. The word was, "The Market Is Going Down".

Fast forward to the chart above. As you now know we went past the "head" of the "head and shoulders" and right through the Daily 50% level of 989 from the launch around 865.

Almost 130 points in 10 trading days!

I call their method voodoo chart reading. They take a formation that works 10 times out of 100 and they run around telling each other, "Head and shoulders! Head and shoulders! The fake rally is over! As if repeating it enough times will make it come true. I think it just helps the "Casino Traders" feel better because they hate the land of "Not Knowing".

Volume can't tell you direction until after the trade is gone.

Only buying and selling pressure can give you actionable, advance notice.

Buying and selling pressure can't lie.

Volume lies all the time.

The herd gets slaughtered. Without them we don't eat.

How about YOU?

Warning!
Futures Trading Disclaimer: Trading futures and options involves the risk of loss. Please consider carefully whether futures or options are appropriate to your financial situation. Only risk capital should be used when trading futures or options. Investors could lose more than their initial investment. Past results are not necessarily indicative of future results. The risk of loss in trading can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition.

Volume vs. Buying/Selling Pressure

There are two charts in the next post up.
They were looking at Volume. They saw a drop in Volume. They drew a line indicating that lower volume meant that there would be a drop in price.

On the other hand I don't care what the Volume is. In fact, smart money often accumulates or buys at a low and they try to do it withou being detected. They don't want competition at the "bargain table".

My interest is in the Buying and Selling pressure. That's what tells' me what is going to happen next with price direction.

One of the fun things about trading is reading the "URGENT" emails I get from so-called experts who are going to help me make money in the markets. They promise that if I send them money they will alert me to all the critical moves in the markets.

Well here we go again. There are two Daily S&P charts I'd like to show you.

One is mine and one is their's.


Guess who go it right?

Is It Real?

Since March there have been many predictions about this current rally.

I guess what I've enjoyed most about the last 4 months is watching all the predictions and their basis while just going along trading whatever the market gives me one-day-at-a-time.

Today was a good example. I like it when CNBC does their "Fast Money" interviews and asks each guest 'expert' how they think the market will be into the close. Today most were stumped. But one floor trader said, "I'll be a seller into the close."

I just wish I could thank him personally for the profits the "sellers" gave me today, as they were panic buying to cover their positions into and after the close.

To answer the question. "Is It Real?"

Yes.... It's Real!

The profits were just as real to me as their losses were to them.

The last two weeks have been rock-solid real.

Warning!
Futures Trading Disclaimer: Trading futures and options involves the risk of loss. Please consider carefully whether futures or options are appropriate to your financial situation. Only risk capital should be used when trading futures or options. Investors could lose more than their initial investment. Past results are not necessarily indicative of future results. The risk of loss in trading can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition.